Porsche to Cut 5,000 Jobs — About 12% of Workforce

German luxury car manufacturer Porsche announced on Monday that it will cut an additional 5,000 jobs by 2035 as part of a second efficiency package agreed upon by the company's management and employee representatives. This represents about 12% of the total workforce.

The agreement also includes a five-year extension of management's commitment to continue operating Porsche's plants until 2035, as well as investments of 2.1 billion euros in its facilities in Zuffenhausen and Weissach. According to the company's announcement, the layoffs will be carried out in a "socially responsible manner."

As of the end of 2025, Porsche employed 41,780 workers, 35,700 of whom were in Germany. Porsche, a subsidiary of Volkswagen, has transitioned in recent years from a key profit engine into a company facing a crisis, impacting the bottom line of its parent company (the Volkswagen Group holds 75% of Porsche's shares and 87% of the voting rights).

The current cut is only a prelude to the significant restructuring expected within the parent group, which is reportedly preparing for an efficiency program and a substantial reduction in its workforce. Volkswagen has been dealing in recent years with high costs and strong, growing competition, including from the Chinese automotive industry. Added to these are the negative effects of the tariff policy from U.S. President Donald Trump.

The latest round of layoffs at Porsche follows a previous program that included a cut of 3,900 jobs, as well as a reduction carried out earlier this year under the leadership of CEO Michael Leiters (who took office in October 2025), which included the firing of 500 employees.